Canadian Solar (NASDAQ:CSIQ) saw its shares fall around 5% in pre-market trading on Thursday following a wider-than-expected third-quarter loss and a subdued outlook for the fourth quarter.
The company reported a loss of $0.21 per share for the third quarter, missing analyst expectations of a $0.11 loss. Revenue declined 18% year-over-year to $1.51 billion, falling short of the $1.71 billion consensus estimate.
Looking ahead, Canadian Solar projected fourth-quarter revenue between $1.5 billion and $1.7 billion, significantly below Wall Street’s estimate of $2.15 billion. The company attributed the weak guidance to persistent challenges in the solar industry, including external pressures and internal complexities.
Despite these setbacks, Canadian Solar achieved a milestone by growing its energy storage contracted backlog to a record $3.2 billion as of November 30. Additionally, the company finalized a $500 million investment from BlackRock into its Recurrent Energy subsidiary during the quarter, bolstering its financial position.
While Canadian Solar continues to navigate a difficult operating environment, its expanding energy storage business and strategic investments could provide long-term growth opportunities amidst industry headwinds.